The bond has a 10.75% interest rate and a three-year tenor with an early redemption option in December 2014. Should IBAM fail to make an interest or principal payment under the terms of the bond, bondholders will benefit from a put option, allowing them to sell the bonds to IBA.

IBA's offer to purchase the bonds in case of a default by IBAM represents an irrevocable undertaking and ranks equally with IBA's other senior unsecured obligations, save those preferred under Azerbaijan law. Under Azerbaijan law, retail depositors rank ahead of other senior unsecured creditors. Retail deposits accounted for 25% of IBA's total liabilities at end-2012, according to the bank's unconsolidated statutory accounts.

KEY RATING DRIVERS AND SENSITIVITIES

The assignment of the final rating follows the completion of bond placement, which was initially assigned an expected 'BB(EXP)' rating. For more details please see 'Fitch Rates IBA-Moscow's Bonds 'BB(EXP)' dated 27 March 2013 available at www.fitchratings.com.